Complete Guide to Personal Loans
The advent of Uber has made decent paying work accessible to many people who might otherwise struggle to find a job. As an Uber driver, all you need is a car and a license and you can start earning well above minimum wage.
However, there are costs involved in becoming an Uber driver, especially if you don’t have a car or if your car needs an upgrade. One way to cover the upfront costs of becoming an Uber driver is through a personal loan. This article explores Uber driver loans and which options are right for you.
Reasons why an Uber driver might need a loan.
One way Uber differs from other jobs is that it needs equipment, i.e., a car, that fits certain requirements. Obtaining the right vehicle can incur substantial costs, as you will see in the next section.
Upgrading your current vehicle
Uber has certain vehicle requirements that you must meet if you want to qualify for a driving position. First, the car must be less than ten years old. In addition, Uber must consider the car to be in “good condition,” with no visible imperfections or cosmetic issues. Since this criterion excludes the vehicles of many low-income workers, prospective drivers must pay to remove damage to their cars, or even buy a new car altogether.
Buying a car to become a driver
Buying a newer car is the only option for people who want to become Uber drivers, but have cars that are more than 10 years old or do not own a car at all. However, many simply cannot afford to cover the cost of a newer car upfront, which is where loans can come in handy.
Loans available for Uber drivers
There are several loans available to prospective Uber drivers; see the next section for some options.
Bad credit auto loans (best for bad credit).
A bad credit auto loan is an auto loan designed for people with relatively low credit scores who would not otherwise qualify. The interest rates on these loans will be higher than a regular auto loan, but the qualification requirements are much lower. Once you make a certain number of payments on time, you can refinance your bad credit auto loan and get regular interest rates.
Secured Auto Loans (even better if you have a co-signer)
A secured auto loan is another suitable option for people without the best credit or income. Secured auto loans, such as one from QVCredit, allow you to qualify for relatively low interest rates by using the car as collateral for the loan. Applicants can combine this with a cosigner to get a substantially lower interest rate. However, if you miss payments, you may lose the car, which, if you are an Uber driver, would result in a loss of income.
Personal loan (best for immigrants and visa holders).
Getting a personal loan can give you access to higher sums to buy a car than a regular car loan. Many lenders offering auto loans or bad credit auto loans require permanent residency or a social security number. Immigrants and visa holders, then, can benefit from a personal loan, as there are lenders who offer personal loans specifically to non-citizens.